Magic Quadrant for Customer Communications … research note is restricted to the personal use of...

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G00251841

Magic Quadrant for Customer CommunicationsManagement SoftwarePublished: 26 November 2013

Analyst(s): Karen M. Shegda, Kenneth Chin, Pete Basiliere

CCM software enables organizations to create, personalize and delivercommunications to customers more effectively via any output channel.Prospective buyers should use this Magic Quadrant — Gartner's first on thistopic — as a starting point when shortlisting providers.

Market Definition/DescriptionA customer communications management (CCM) strategy aims to improve an organization'screation, delivery, storage, and retrieval of outbound and interactive communications with itscustomers. Fulfilling such a strategy requires software applications that compose, personalize,format and output content acquired from various sources in the form of targeted electronic andphysical communications between the organization and its customers (existing and prospective)and business partners. CCM software solutions include as core elements a design tool, acomposition engine, a workflow/rule engine and multichannel output management capabilities. Thiscategory of application enables customer interactions through a wide range of communicationmedia, including mobile, email, SMS, websites, print and customer self-service.

Gartner's decision to publish a Magic Quadrant on this topic reflects the CCM software market'sgrowth and crucial role in the creation of highly personalized multimedia communications. Weestimate that this market represents approximately $800 million worldwide, as measured in totalsoftware provider revenue in 2013. We forecast that this figure will grow to more than $1 billion by2016, with a compound annual growth rate of 11%.

As enterprises look to reduce the costs associated with print delivery, improve communications andengagement with their customers, and modernize and consolidate their applications, demand forCCM software is increasing. Our research has found that most enterprises embarking on theprocess of selecting a CCM provider do so for one or more of the following reasons:

■ Their current solution is not flexible enough to meet their changing needs.

■ They require new functionality that their existing CCM provider cannot provide.

■ They want to consolidate multiple CCM solutions across their business.



The highest demand for CCM software comes from the following industries: insurance, financialservices, telecommunications, utilities and government.

This Magic Quadrant evaluates 15 providers that met our inclusion criteria. Note 1 lists providersnot featured in this Magic Quadrant that have products or services which may suit some clients.

Magic QuadrantFigure 1. Magic Quadrant for Customer Communications Management Software

Source: Gartner (November 2013)

of 23 Gartner, Inc. | G00251841



Vendor Strengths and Cautions

Adobe

Adobe (www.adobe.com) is headquartered in San Jose, California, U.S. It markets a CCM softwareproduct called Correspondence Management Solution, which is built on top of Adobe LiveCycleEnterprise Suite, its secure enterprise forms and document platform. Adobe's CCM solutionappeals to insurance, financial services and government organizations, though as an add-on toAdobe Experience Manager it has broader appeal. Partners market it to healthcare, manufacturingand life sciences organizations. Adobe is evolving its vision for CCM to focus on multichannel,interactive and on-demand customer communications. Recently it announced the availability of theAdobe Experience Manager Customer Communications Management add-on to give digitalmarketers the ability to personalize outbound communications and support multichannel delivery aswell as brand management. These moves solidify Adobe's position as a Visionary in the CCMsoftware market.

Strengths

■ Adobe's Correspondence Management Solution has strong workflow and business processmanagement (BPM) capabilities for content review and approval, as well as process modeling,reporting and analytics.

■ Adobe augments its core CCM offering with capabilities for digital rights management, e-signatures, analytics and response management.

■ The Correspondence Management Solution is best known for handling correspondence andinteractive documents. Adobe's vision will see it do more to support targeted and personalizedcommunications, including content creation for marketing campaigns, across multiple channels.

Cautions

■ Adobe focuses predominantly on correspondence management and PDF output with its suite ofLiveCycle tools; its support for batch communications is less strong. Competitive productsaddress a broader array of batch, interactive and on-demand capabilities.

■ Enterprises that Gartner has spoken to or surveyed regarding traditional CCM providershortlists often dismiss Adobe because they do not view it as a strategic infrastructure partnerin the way they do HP, EMC and Oracle.

■ Adobe is in transition with its LiveCycle products and CCM. Some customers that Gartnersurveyed indicated that Adobe needs to clarify its product road map.

Aia Software

Founded in 1988 and headquartered in the Netherlands, Aia Software (www.aiasoftware.com)develops and markets the ITP platform for CCM. It targets the insurance, financial services andutilities industries, as well as the public sector, and its software is often deployed in departments of

Gartner, Inc. | G00251841 of 23

http://www.adobe.com/

http://www.aiasoftware.com/



large enterprises. ITP Enterprise enables batch, interactive and on-demand communications. Aia isa Visionary on the basis of its social and mobile capabilities.

Strengths

■ Aia makes innovative use of social media and mobile apps. It not only uses mobile technologyas a delivery channel for outbound communications, but is segmenting its composition softwareinto task-specific mobile apps.

■ A key focus for Aia is enabling stakeholder self-service. Its tools are designed with the businessuser in mind, rather than forcing them to rely on IT staff for document authoring andcomposition. Aia's platform uses Microsoft Word and OpenOffice as its standard authoringtools; it also has a WYSIWYG editor, and it works well on shorter textual documents.

■ Aia's document composition tool for Microsoft SharePoint and integration with MicrosoftDynamics will appeal to many prospective customers, especially for departmental uses and inthe midmarket.

Cautions

■ Aia lacks name recognition outside Europe. To expand its global footprint, it must increaseawareness of its brand through better positioning and marketing.

■ Aia's native workflow capabilities are limited in comparison to those of some of its competitorsin the CCM market. It lacks visual workflow design capabilities and extended BPM componentsfor reporting and analytics.

■ Aia only recently launched its first cloud solution, which it plans to market fully in 1Q14. It does,however, make a cloud offering and hosted versions of its software available through partners.

Cincom Systems

Cincom Systems (www.cincom.com) is a 45-year-old, privately held company, headquartered inCincinnati, Ohio, U.S., that has no external investors. A Niche Player, Cincom's core products areEloquence Author, Eloquence Engine and Eloquence Web. Eloquence Author enables users tocreate templates with complex business logic that can be applied to the full range of customercommunications. Eloquence Engine's service-oriented architecture (SOA) and use of openstandards enables integration with and support for multiple delivery channels, as well as output in avariety of formats. Optional modules for Cincom Eloquence include Advanced OutputAdministration and Batch Administration.

Strengths

■ The midsize business segment is Cincom's primary market, although it also has largercustomers with significant document volumes and concurrent users.

■ Eloquence enables users to create new templates while reusing not only content but also dataelements across multiple templates.


http://www.cincom.com/



■ Customers generally express moderate levels of satisfaction with Cincom's products, serviceand support, but they tend to be loyal and willing to recommend Cincom to others.

Cautions

■ Despite its long history, and possibly because of its willingness to be a "white label" OEMpartner, awareness of Cincom's brand is low among current and prospective users of CCMsoftware. Cincom is among the providers least likely to be considered as an alternative to CCMusers' current providers.

■ Cincom has a low number of customers for the length of time it has been in business. Also, ithas acquired few new customers during the past two years, resulting in a growth rate slowerthan that of the market as a whole.

■ Eloquence processes a very low number of documents per hour in comparison with otherproviders' products, some of which can process millions of pages per hour.

Doxee

Doxee (www.doxee.com), headquartered in Modena, Italy, is a SaaS CCM provider, with over 90%of its revenue coming from cloud CCM software licensing, maintenance and consulting services; inthis respect it differs from the majority of CCM software providers, which have migrated to cloud-based SaaS offerings over time. Doxee's Enterprise Communication Platform version 2.0 modulesrange from collaboration through data transformation and document composition to multichanneldistribution and electronic archival. The Enterprise Communication Platform is available in a hostedenvironment, whether on a public cloud or in a private cloud on-premises. Doxee's understandingof the market's evolution toward the cloud makes it a Visionary.

Strengths

■ Doxee's pricing is compelling to midsize enterprises. Its SaaS licensing model allows customersto configure the Doxee platform for the most appropriate products, features and output volumecapacity.

■ Doxee's CCM software runs on a multitenant SaaS platform, with all customers using it alwayson the latest version of that platform. The company runs its own data centers and its serviceproduct development team regularly upgrades the Enterprise Communication Platform andother products.

■ Despite being one of the smaller providers in this Magic Quadrant in terms of annual revenue,Doxee has one of the strongest satisfaction ratings for customer experience.

Cautions

■ Doxee recently launched an initiative to expand beyond its home market of Italy (where it is alsoa transaction document outsourcing [TDO] company) and its primarily Western Europeancustomer base, but this has yet to produce significant results.


http://www.doxee.com/



■ The company's marketing execution has yet to create strong visibility for its offerings, whichinhibits its ability to get its message to prospective clients outside its home region.

■ Doxee lags behind its competitors in term of interactive capabilities; it plans to includeinteractive features on its one-to-three-year road map.

EMC

EMC (www.emc.com), headquartered in Hopkinton, Massachusetts, U.S., is one of the market'sLeaders. EMC Document Sciences xPression is a CCM product that supports interactive and on-demand applications well. The Enterprise Edition contains a robust rule engine to dynamically selectcontent based on customer data to create customized communications and deliver them usingmultiple channels. Document Sciences xPression is a highly scalable, standards-based platform,and it provides Web services and APIs to integrate with existing enterprise systems. It is oftenselected by customers who also use EMC's Documentum products, which enables them toleverage its capabilities and content repository, though other repositories can also be used ascontent stores.

Strengths

■ Document Sciences xPression is integrated with Documentum to automate the generation ofcustomized customer correspondence from business processes.

■ EMC OnDemand, a private cloud-based managed service, can be used to deploy DocumentSciences xPression in the cloud, which can streamline implementation.

■ Document Sciences xPression has strong design capabilities with a broad set of authoringtools, including Microsoft Word, Adobe InDesign and Adobe Dreamweaver for content creation.

Cautions

■ Document Sciences xPression is a robust CCM product, but it may require more support forapplication development. EMC should continue to enhance its design clients to addressadditional use cases in order to help reduce application development costs.

■ Some customers have noted that implementing Document Sciences xPression has been moredifficult than implementing other CCM products. Its multitier, services-oriented architecturerequires deployment on a Java EE application server.

■ The pricing of Document Sciences xPression is on the high side but comparable with otherhigh-end enterprise CCM solutions.

FIS

Recognized as a banking services and TDO provider, and headquartered in Jacksonville, Florida,U.S., FIS (www.fisglobal.com) acquired Metavante in 2009 to expand the reach of its bankingservices and branch into the CCM market. While FIS is positioned as a Challenger due to its narrowinstalled base and modest CCM revenue, it is pursuing opportunities to use its CSF Designer


http://www.emc.com/

http://www.fisglobal.com/



technology for internal business documents and B2B applications with enhancements relating tobusiness processes and change management.

Strengths

■ CSF Designer has a strong and loyal customer base that puts FIS among the top-five CCMsoftware providers by number of clients and revenue.

■ Learning from its own experiences as a TDO provider, FIS developed the FasTest suite toreduce the risk of documents with errors making it to market.

■ CSF Designer's single-template approach across all delivery models (batch, on-demand andinteractive), all output channels, all platforms (such as MVS, Windows and Unix) and multiplelanguages benefits customers as their number of output channels and applications increases.

Cautions

■ Although its broad product set is used in the financial services, utilities and other high-volumedocument industries, FIS has not translated its CSF Designer offering to all its core industries.

■ While its single-template approach enables multimedia publishing, CSF Designer's performancefor organizations in industries outside its core set, such as retail businesses and servicebureaus that regularly produce multimedia communications, is largely untested.

■ FIS clients must use third-party products to enable GUI-based end-to-end workflowconfigurations using a library of drag-and-drop, connectable modules.

GMC Software Technology

GMC Software Technology (www.gmc.net), headquartered in Appenzell, Switzerland, is a Leader inthe CCM software market and one of the three providers most often identified as a competitor byother providers. GMC Software epitomizes the mergers and acquisitions that have characterized theCCM software market for the past decade. It grew into a major global CCM player with extensiveplatform capabilities well-suited to TDO providers and in-plant print/mail operations before beingacquired in July 2012 by Neopost, a multinational provider of mailing systems and related software.Neopost plans to operate the company as a subsidiary, while retaining the GMC Software nameand brand.

Strengths

■ GMC Software is one of the providers that shook up — and continues to shake up — the CCMsoftware market in terms of ease of use and implementation, low-cost product pricing andmarketing execution.

■ GMC Software has one of the strongest customer experience ratings from users surveyed forthis Magic Quadrant.


http://www.gmc.net/



■ GMC Inspire, a set of document and data layout tools, enables customers to use a library ofdrag-and-drop, connectable, functional modules that contain a point-and-click GUI forconfiguration using a visual workflow surface. The reusable and extensible modules supportdata extraction, data transformation, data output, presentation layer design and external import,output imposition and sortation, and multichannel content output.

Cautions

■ Neopost acquired GMC Software in part to strengthen its presence in the small and midsizebusiness (SMB) market. However, Neopost has little experience in selling complex softwareofferings such as CCM products, so it will have to develop its go-to-market strategy andredesign everything from sales support and compensation to professional services and support.

■ GMC Software must remain a forward-looking organization, one that strives to understandmarket trends and emerging client needs unfettered by the demands of a publicly heldcorporation.

■ The company has not yet achieved its goal of branching out from its commercial printingcompany clientele into the banking, insurance and telecom markets. Nonetheless, during thepast year over one-third of its new clients have been large or very large enterprises.

HP

HP, based in Palo Alto, California, U.S. (www.hp.com) is one of the CCM software market's Leadersby virtue of its strong product offering and large and established customer base. HP Exstreamprovides a comprehensive set of capabilities in all areas, including authoring, workflow, compositionand multichannel output. Its product handles structured CCM well due its scalability and outputmanagement capabilities. The Exstream organization has been brought into HP's Autonomy divisionwith the aim of strengthening the focus on customer engagement and the customer experience. HPhas introduced a SaaS version of Exstream called HP Relate, which is integrated withsalesforce.com and ideally suited to small and midsize organizations.

Strengths

■ HP Exstream is a highly scalable CCM platform with an architecture that enables it to runmultiple instances across multiple processors/servers with load balancing. This enables high-volume applications to process millions of pages per CPU hour.

■ HP Exstream has strong multichannel output and document production capacities. HPExstream Delivery Manager supports a wide range of delivery channels and a broad array ofdevices and file formats.

■ HP's global presence provides it with one of the strongest sales, support and servicesorganizations.


http://www.hp.com/



Cautions

■ HP Exstream is a functionally rich product, but it is often more costly than others and requiresmore services for implementation.

■ HP Exstream is most widely used for structured CCM, though new deployments includeinteractive CCM capabilities.

■ HP's cloud offering is still evolving as customers remain focused on the on-premises version ofHP Exstream.

Isis Papyrus Software

Isis Papyrus Software (www.isis-papyrus.com) is a privately held company based in MariaEnzersdorf, Austria. The Papyrus Platform consists of a broad set of components that can beconfigured for CCM. It has evolved from a platform focused on output management to includecapture and process management, which enables the company to build case managementapplications. Although a Niche Player and one of the smaller CCM providers in this Magic Quadrant,Isis Papyrus has a global presence with worldwide service and support centers in differentgeographical regions.

Strengths

■ Isis Papyrus provides output management for intelligent, end-to-end automation of print andmail shop production processes.

■ Isis Papyrus provides an integrated platform to handle both inbound and outbound customercommunications.

■ Isis Papyrus has a strong set of process management capabilities that can be used to extendand support CCM applications.

Cautions

■ Isis Papyrus faces a challenge to grow its customer base and is limited geographically in theNorth American market.

■ Although the Papyrus Platform can be deployed in the cloud, Isis Papyrus does not currentlyhave a cloud-based offering.

■ Clients whom Gartner has spoken to report a higher level of support issues than with otherproviders.

Newgen Software

Newgen Software (www.newgensoft.com) is headquartered in New Delhi, India. It has offices in fiveother countries — the U.S., Canada, the U.K., the United Arab Emirates and Singapore — and 1,100employees. Newgen is principally an enterprise content management (ECM) and BPM platform


http://www.isis-papyrus.com/

http://www.newgensoft.com/



provider that delivers content applications, including CCM software, on top of its core ECM andBPM stack. Its lack of name recognition in the CCM market and its size make it a Niche Player.

Strengths

■ Newgen offers a comprehensive CCM solution for batch, interactive and on-demandcommunications. Its solution has gained good traction in financial services and governmentdeployments, and the clients we surveyed were satisfied with Newgen's CCM functionality.

■ Newgen has good integration capabilities based on Web services, APIs and packagedadapters. It has its own ECM repository and can be integrated through adapters withDocumentum, FileNet and Microsoft SharePoint. It has been integrated with core applicationssuch as SAP ECC 6.0, Finacle, Life Asia, Oracle Flexcube and Microsoft Dynamics. A socialmedia connector enables acceptance of requests from, and delivery of communications to,Twitter, Facebook, Flipboard and other social sites.

■ Newgen customers with whom Gartner has spoken are generally positive about the presalesand implementation support they have received.

Cautions

■ Newgen lacks brand awareness in the CCM market overall and, though strong in the ECM andBPM markets, it has yet to build a track record in this market due to its relatively small CCMinstalled base.

■ By tying its sales strategy for CCM applications to its own ECM platform, Newgen is limiting itsappeal to organizations that have already standardized on other ECM stacks and are looking fora best-of-breed CCM application.

■ Although Newgen sees the cloud as an important opportunity, its cloud strategy is still emergingand cloud deployments represent a small percentage of its overall revenue. Its CCM suite iscurrently available for public (Amazon Web Services), private and BPO deployments, socustomers may experience inconsistent service levels.

OpenText

Headquartered in Waterloo, Ontario, Canada, OpenText (www.opentext.com) markets StreamServe,a CCM product with a strong history of providing document presentment capabilities for SAP tomeet enterprise business communication needs. Strategic alliances with SAP (for SAP DocumentPresentment) and Adobe (for LiveCycle Production Print) enable OpenText to win large enterprisedeals, while a partnership with Infor addresses SMBs. OpenText's strategy to align and integrateStreamServe with its customer experience management, ECM and BPM products provides moreextensible applications, such as ones for case management and correspondence management.OpenText is a solid Challenger in the CCM software market.


http://www.opentext.com/



Strengths

■ StreamServe provides a flexible authoring environment, along with its authoring tool,StreamServe StoryTeller.

■ StreamServe provides dynamic publishing capabilities to easily alter the print data stream by,for example, changing or adding a bar code, moving, deleting or adding information, andsorting or commingling document sets.

■ StreamServe provides good document presentment capabilities, especially for SAPapplications.

Cautions

■ StreamServe has limited functionality for interactive forms.

■ OpenText does not currently have a SaaS cloud offering for StreamServe, although it can bedeployed in a private cloud environment.

■ StreamServe has limited native integration for content management repositories to store andarchive customer communications — other than OpenText Content Server and MicrosoftSharePoint (through partners).

Oracle

Oracle (www.oracle.com), based in Redwood Shores, California, U.S., acquired the DocumakerCCM software offering with its 2008 purchase of Skywire Software. Initially focused on insurance,Documaker is now positioned as a horizontal platform that can also address the communicationsneeds of enterprises in the financial services and banking, telecommunications and utilities markets,as well as the public sector. Oracle has invested heavily in Documaker over the years, rearchitectingit on the Fusion Middleware stack, releasing four major new versions since 2010, and integrating itwith Oracle WebCenter Content and Oracle Policy Automation. As a longtime provider with a goodinstalled base, Oracle is a solid Challenger in the CCM software market.

Strengths

■ The size and capabilities of Oracle's sales force and the company's broad technology stackgive it a significant global presence in the CCM software market, though it primarily appeals toexisting Oracle customers. Documaker is often bundled into an overall Oracle application sale.

■ Oracle Documaker is one of the more mature CCM software offerings, with over 1,000customers representing enterprise, rather than just departmental, deployments. Documaker isscalable and capable of producing 2 million documents per day and handling millions oftransactions per month.

■ Customers that Gartner surveyed for this Magic Quadrant rated Oracle Documaker positively,and they especially valued the pre- and post-sales assistance they received from Oracle.


http://www.oracle.com/



Cautions

■ Insurance is Oracle's dominant industry, accounting for about 70% of Documaker deployments.Documaker is typically neither shortlisted by organizations outside the insurance sector normentioned in the discussions Gartner has with clients outside this sector. Oracle needs tocontinue improving its sales and marketing efforts to attract buyers in its targeted industries.

■ Some Oracle customers report frustration with the cost and complexity of Documakerdeployments. Oracle generally receives moderate ratings for user-friendliness, training andpricing.

■ Documaker lags behind some of its CCM competitors when it comes to analytics, cloud andcontext-aware — social and mobile — capabilities. Although Oracle has good search andbusiness intelligence tools, as well as WebCenter Sites for Web content management inmarketing contexts, Documaker is not yet integrated with those tools.

Pitney Bowes

Pitney Bowes (www.pb.com), which is based in Stamford, Connecticut, U.S. and among themarket's Leaders, provides CCM software, hardware and services that enable both physical anddigital communications. Its EngageOne Communication Suite is a complete solution for CCM thathas evolved from the DOC1 offering that focused on document composition. Pitney Bowes isbringing together its products to improve customer engagement by combining campaignmanagement and analytics. Pitney Bowes can provide services to support an end-to-end solutionfor customer communications, including print and mail services.

Strengths

■ The EngageOne Communication Suite is very scalable, especially for structured CCMapplications, and suited to high-volume applications running millions of documents per month.EngageOne Interactive supports applications such as correspondence management.

■ EngageOne has good multichannel communication management capabilities, along with outputmanagement components for print and mail applications.

■ Pitney Bowes has a broad base of CCM customers across more than 65 countries. It focuseson upper-midsize and large enterprises.

Cautions

■ Pitney Bowes is still in the early stages of integrating EngageOne Communication Suite withPortrait Customer Interaction Suite (acquired in 2010) to add campaign management, customeranalytics and location analytics to its CCM platform.

■ The authoring environment is limited as EngageOne Designer is the only authoring toolavailable. Other authoring tools, such as Microsoft Word and Adobe InDesign, cannot be used.

■ The market is increasingly looking for cloud solutions, but Pitney Bowes has been slow toevolve EngageOne into the cloud.


http://www.pb.com/



Sefas Innovation

A wholly owned subsidiary of La Poste, the French postal service, Sefas Innovation(www.sefas.com) is based in Charenton-le-Pont, France, and has a presence in the U.S. and theU.K., and installations in large enterprises. Sefas, a Niche Player, is extending its CCM offering, withplans to introduce a major new version in 2014. Currently planned as Open Print version 8, therevision will feature a unified document approach that extends its proprietary Virtual Page Format(VPF) to support both legacy paper output and newer formats, including native email and Web/HTML output.

Strengths

■ As a wholly owned subsidiary, Sefas has access to the financial resources of the La PosteGroup, which is essentially the French postal service (La Poste) and several subsidiaries.

■ Sefas's CCM offering incorporates document composition, post-composition and outputmanagement capabilities into a single interface. It is an end-to-end solution for small andmidsize organizations and departments within large enterprises, one that combines itscomposition engine with printer/mail inserter and publishing output by email or hosting service.

■ Sefas has one of the broadest sets of OEM hardware and software and aftermarket servicepartners, capable of providing support locally and worldwide.

Cautions

■ Sefas has relatively few large enterprise clients. It is, however, extending its product offering toattract more and to support all clients better.

■ The company's marketing and sales execution, when compared with those of most of itscompetitors, are seen to inhibit its ability to grow its client base.

■ Sefas's SMB clients are mainly European, although its planned SaaS offering could enablegrowth in other regions.

Xerox

Xerox's CCM offering, through XMPie (www.xmpie.com) of New York, New York, U.S., has a solidbase of commercial printing company clients. It also provides enterprise customers with Web-to-print, multichannel communications and marketing automation tools. Unique among CCM providersare Xerox's XMPie Circle product, which offers an integrated view of a full marketing campaign, anduDirect Video product, which enables users to create and render personalized videos thatincorporate motion-picture graphics and cinematic-quality visual effects. Xerox's strong ability toexecute and attract direct marketers make it a Challenger.

Strengths

■ XMPie benefits from Xerox's financial strength and clear focus on providing a comprehensivemultimedia personalization solution.


http://www.sefas.com/

http://www.xmpie.com/



■ XMPie not only includes tools for multichannel output but also incorporates analytical andvisualization tools that bring clarity to users' 1:1 multichannel campaigns and to how customerexperiences can be delivered.

■ Xerox's offerings are tailored to customers that serve organizations ranging from smallbusinesses to large enterprises. Customers can choose from Xerox's modules, turnkey systemsand platforms according to their budgets, needs and in-house technical resources.

Cautions

■ Since most existing XMPie customers are commercial print service providers, prospectivecustomers should examine its enterprise customer experiences to ensure XMPie has the toolsand scalability for their specific requirements.

■ XMPie faces numerous competitors with strong marketing automation and campaignmanagement toolsets that could attract the attention of potential buyers.

■ Although XMPie's use of Adobe InDesign facilitates the creation and production of graphicallyrich, dynamic documents, such as highly personalized marketing collateral, there is a trade-offwhen using its proprietary XLIM document format for high-speed production of graphicallysimpler transaction documents.

Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as marketschange. As a result of these adjustments, the mix of vendors in any Magic Quadrant orMarketScope may change over time. A vendor's appearance in a Magic Quadrant or MarketScopeone year and not the next does not necessarily indicate that we have changed our opinion of thatvendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria,or of a change of focus by that vendor.

This is the first Magic Quadrant on this topic.

Inclusion and Exclusion CriteriaTo qualify for inclusion in this Magic Quadrant, each provider had to meet certain criteria forrevenue and functionality, and have a proven track record of customer deployments. Specifically,each provider had to have:

■ Its own core CCM software commercially available, for on-premises or cloud deployment, and ithad to actively market and promote this software as such.

■ Software or a SaaS offering that includes all of the following components: authoring/design tool,composition engine, workflow/rule engine and capabilities for multichannel output.

■ A minimum of $10 million in total software revenue derived from CCM, or $10 million in annualsubscription revenue for SaaS providers. Total CCM software revenue includes revenue from




sales of CCM software and software maintenance and support services; it excludes revenuefrom professional services and the sale of products provided by other providers.

■ The ability to supply five reference customers, representing a diversity of industries, companysizes and geographies, that have had its CCM software in production for at least a year.

Evaluation Criteria

Ability to Execute

Ability to Execute measures how well a provider sells and supports its CCM products and serviceson a global basis. In addition to rating product capabilities, we evaluate each provider's viability,especially with regard to revenue growth and profitability, direct sales operation and/or partnerchannel, installed base, pricing, customer support and satisfaction, and product migrations fromone major release to another.

Table 1. Ability to Execute Evaluation Criteria

Evaluation Criteria Weight

Product or Service High

Overall Viability High

Sales Execution/Pricing Medium

Market Responsiveness/Record High

Marketing Execution Low

Customer Experience High

Operations Medium


Completeness of Vision

Completeness of Vision focuses on potential. A provider might succeed financially in the short termwithout a clearly defined vision or strategic plan, but it will not become a Leader. A provider withaverage vision anticipates change by accurately perceiving CCM market trends and exploitingtechnology. A provider with superior vision anticipates, directs and initiates market trends,particularly if it integrates its vision for a broad range of areas, and capitalizes on product andservice development. Part of our assessment involves looking at how well each providerunderstands enterprises' changing requirements for CCM, including the movement toward more




interactive and on-demand capabilities, as well as multichannel versus print output. We also assesshow well the provider is anticipating or planning to address market trends such as cloud deliveryoptions and the increased use of analytics, social and mobile technologies.

Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria Weight

Market Understanding High

Marketing Strategy Low

Sales Strategy Low

Offering (Product) Strategy High

Business Model Medium

Vertical/Industry Strategy Medium

Innovation High

Geographic Strategy Low


Quadrant Descriptions

Leaders

Leaders drive transformation in the CCM market. They have the highest combined scores for Abilityto Execute and Completeness of Vision. They are doing well and are prepared for the future with aclear vision. They have strong channel partners and a presence in multiple regions; they achieveconsistent financial performance; and they offer broad platform support and good customersupport. In addition, they dominate in one or more technologies or vertical markets. Leaders areaware of the ecosystem in which their offerings need to fit.

Challengers

Challengers are solid providers today and can perform well for many enterprises. The importantquestion is whether they have the vision to succeed in tomorrow's CCM software market. AChallenger may have a strong CCM product but a product strategy that does not fully reflect markettrends, such as the increasing importance of the user's context, multichannel output andinteroperability with adjacent technologies (for example, CRM, ECM and Web contentmanagement).




Visionaries

Visionaries are forward-thinking and technically focused. For example, their CCM products mayhave unique capabilities, or they may set the market's direction through their innovation andproduct development. To become Leaders, they must work on some of the core aspects of theirofferings and increase their Ability to Execute. They may also need to build financial strength, gainfunctional breadth, improve service and support, and expand their geographical coverage and salesand distribution channels. Their evolution may hinge on the acceptance of a new technology or onthe development of partnerships that complement their strengths.

Niche Players

Niche Players focus on a particular geography or segment of the CCM software market, as definedby characteristics such as size, industry and project complexity. Niche Players typically have acomprehensive CCM offering but a relatively limited customer base. This focus can enable them tooutperform or be more innovative than other players, but there is no guarantee that will be the case.A Niche Player may be a perfect fit for your requirements. However, if a Niche Player goes againstthe direction of the market — even if you like what it offers — it may be a risky choice because itslong-term viability will be under threat.

ContextEnterprises need to continue to reduce costs and control spending. This has led more of them tomigrate to open platforms and SOA, as older applications and mainframe CCM systems becomemore costly to upgrade and maintain, and SaaS and cloud-based applications continue to grow asalternatives to internally managed systems. This development increasingly involves a move from in-house-developed CCM solutions to packaged apps.

Enterprises' CCM initiatives continue to focus on more cost-effective reuse of shared contentresources, such as product documentation, marketing messages and service representatives'scripts for discussions with customers. This content is used to upsell and cross-sell using "push"and "pull" marketing techniques that result in revenue gains from the use of highly targeted andpersonally relevant content. Moving beyond the basic personalization that was a staple ofdocument composition tools, enterprises have also recognized the power of CCM solutions forhandling on-demand and interactive scenarios. Today's CCM software must also support therevenue opportunities arising from instantaneous context-aware interactions with users whoexpress their product and service needs via mobile devices and a variety of social media channels.

Market OverviewCCM software is the engine that generates the electronic and print communications used by anorganization to interact with its audiences. Common types of communication are customercorrespondence, statements, bills and payment notices, policy documents, claims, contracts,welcome kits and explanations of benefits.




CCM software enables customer interactions through a wide range of media, including mobile,email, SMS, Web pages, print and customer self-service.

The CCM software market has evolved from the convergence of document generation/compositionand output management technologies. With this evolution has come a fairly steady rate of softwareacquisitions, including the following (acquiring company first):

■ EMC: Document Sciences

■ FIS: Metavante Technologies

■ HP: Exstream Software

■ Neopost: GMC Software Technology

■ OpenText: StreamServe

■ Oracle: Skywire Software (which had earlier acquired Docucorp)

■ Pitney Bowes: Group 1 Software and Emtex

■ Xerox: XMPie

Significant purchases have been made by digital printer and mail-inserting equipment providers.Well-established software providers are also making acquisitions.

Increasingly, CCM is seen as a content application and tied to an ECM solution for archiving andretention of communications. In addition, providers are tying their respective CCM offerings moredeeply to their Web content management and search and analytics offerings as part of a customerexperience management or digital marketing strategy. As CCM providers focus more on interactive,on-demand and contextual communications, and delivery of those communications via multiplechannels, the CCM category is both overlapping with and requiring a high degree of interoperabilitywith adjacent technologies, such as CRM, marketing resource management and Web analyticstools.

Gartner Recommended ReadingSome documents may not be available as part of your current Gartner subscription.

"How Gartner Evaluates Vendors and Markets in Magic Quadrants and MarketScopes"

"Leverage Customer Communication Management Software to Improve OutboundCommunications"

"Online Channel Optimization: Framework to Optimize Online/Offline Communications"

"Market Trends: Customer Communications Management Software, Worldwide, 2012"




Evidence

Findings in this Magic Quadrant reflect Gartner's surveys of the provider community, interactionswith clients seeking solutions for CCM projects, and a survey of reference customers identified bythe providers.

Note 1 Other Providers That May Meet Your Needs

Several providers met only some of Gartner's criteria for inclusion in this Magic Quadrant, yet mayprove a viable choice for clients with specific needs. Some are service providers that relicensecommercial CCM software within their service offerings. Others may focus only on the documentcomposition or output management components. A representative list of these providers follows.

Actuate (Xenos), www.actuate.com, San Mateo, California, U.S. Actuate has acquired Xenos, adocument archiving provider, and incorporated it into a new CCM solution that also draws onActuate's Business Intelligence and Reporting Tools (BIRT) offering. Acutate focuses on businessintelligence and CCM in combination.

Cedar Document Technologies, www.cedardoc.com, Atlanta, Georgia, U.S. Cedar's multichannelcommunication and servicing platform delivers a suite of technology products and services in ahosted/managed environment.

Elixir Technologies, www.elixir.com, Ojai, California, U.S. Elixir was founded in 1985 and marketsits products in 100 countries. Its All-in-One platform enables organizations to improve the designand delivery of correspondence.

Icon Systemhaus, www.icongmbh.de, Stuttgart, Germany. Founded in 1995, icon Systemhaus is aprivately held company that provides CCM software and consulting services. It counts many of thetop insurers and banks in Germany among its customers.

Inventive Designers, www.inventivedesigners.com, Antwerp, Belgium. Founded in 1994, InventiveDesigners markets the Scriptura Engage CCM platform.

Legodo, www.legodo.com, Karlsruhe, Germany. Legodo markets a CCM suite with a strong focuson social and mobile capabilities and integration with CRM applications such as those of Oracle(Siebel and CRM On Demand), SAP, salesforce.com and SugarCRM.

Napersoft, www.napersoft.com, Naperville, Illinois, U.S. Napersoft was founded in 1986 andprovides solutions for document composition and multichannel output. It targets the insurance,financial services and healthcare industries, and the public sector.

NEPS, www.neps.com, Salem, New Hampshire, U.S. Since 1988, NEPS has provided solutions andservices for improving insurance policy issuance and correspondence. It is a North America-focused service provider that wraps consulting services and proprietary software around hostedversions of CCM software.


http://www.actuate.com/

http://www.cedardoc.com/

http://www.elixir.com/

http://www.icongmbh.de/

http://www.inventivedesigners.com/

http://www.legodo.com/

http://www.napersoft.com/

http://www.neps.com/



Novadex, www.novadex.com, Bietigheim-Bissingen, Germany. Founded in 2011 and marketingonly in Germany at present, Novadex provides a SaaS-based CCM solution targeted at SMBs andoutput service providers. Its focus on cross-media analytics and e-commerce is a differentiator.

Thunderhead.com, www.thunderhead.com, London, U.K. Thunderhead.com is known for itslegacy on-premises Now product focused on interactive customer communications, but has shiftedits strategy and product offering away from CCM.

Top Down Systems, www.topdownsystems.com, Rockville, Maryland, U.S. Founded in 1979, TopDown Systems has focused on providing correspondence management and document assembly/composition software. The privately held company markets two main products: ClientLetter forgenerating interactive communications and Inform for creating structured, graphically richdocuments.

Xpertdoc Technologies, www.xpertdoc.com, Quebec, Canada. Xpertdoc focuses heavily on theinsurance industry. Its product capabilities lean toward the document composition end of CCM. AMicrosoft partner, Xpertdoc markets a solution for Microsoft SharePoint and integrates its CCMoffering with Microsoft Dynamics.

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the definedmarket. This includes current product/service capabilities, quality, feature sets, skillsand so on, whether offered natively or through OEM agreements/partnerships asdefined in the market definition and detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financialhealth, the financial and practical success of the business unit, and the likelihood thatthe individual business unit will continue investing in the product, will continue offeringthe product and will advance the state of the art within the organization's portfolio ofproducts.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and thestructure that supports them. This includes deal management, pricing and negotiation,presales support, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible andachieve competitive success as opportunities develop, competitors act, customerneeds evolve and market dynamics change. This criterion also considers the vendor'shistory of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designedto deliver the organization's message to influence the market, promote the brand andbusiness, increase awareness of the products, and establish a positive identificationwith the product/brand and organization in the minds of buyers. This "mind share" can


http://www.novadex.com/

http://www.thunderhead.com/

http://www.topdownsystems.com/

http://www.xpertdoc.com/



be driven by a combination of publicity, promotional initiatives, thought leadership,word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enableclients to be successful with the products evaluated. Specifically, this includes the wayscustomers receive technical support or account support. This can also include ancillarytools, customer support programs (and the quality thereof), availability of user groups,service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factorsinclude the quality of the organizational structure, including skills, experiences,programs, systems and other vehicles that enable the organization to operateeffectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needsand to translate those into products and services. Vendors that show the highestdegree of vision listen to and understand buyers' wants and needs, and can shape orenhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistentlycommunicated throughout the organization and externalized through the website,advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network ofdirect and indirect sales, marketing, service, and communication affiliates that extendthe scope and depth of market reach, skills, expertise, technologies, services and thecustomer base.

Offering (Product) Strategy: The vendor's approach to product development anddelivery that emphasizes differentiation, functionality, methodology and feature sets asthey map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying businessproposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills andofferings to meet the specific needs of individual market segments, including verticalmarkets.

Innovation: Direct, related, complementary and synergistic layouts of resources,expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings tomeet the specific needs of geographies outside the "home" or native geography, either




directly or through partners, channels and subsidiaries as appropriate for thatgeography and market.




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